“Where are the stores ?” Update August 31, 2010…Either the Company does not know how to communicate…or it is a fraud. You decide.

China Biotics (NASDAQ:CHBT) is out with a response to Citron’s report of yesterday, in which we questioned the accuracy and credibility of the company’s disclosures. The company is hosting an “Investor Day” in Shanghai “by reservation only”. Citron suggests that this event is unlikely to produce credible answers needed to tough questions about all the aspects of this company’s disclosures that don’t line up with reality. Read more

It Doesn’t Take a Microscope to See What’s Wrong with China-Biotics (NASDAQ:CHBT)
Citron Probes the Obvious: Where are the Stores?

Amazing how fraud is like water, it just finds the path of least resistance. When Citron started this column nine years ago this week, the frauds were OTCBB stock promotions run out of boiler rooms. The progressed to internet campaigns and mailers, and now most recently to the greatest promotion of ’em all: CHINA. In this past weekend’s Barron’s Magazine, Bill Alpert does a fine job in describing the web of fraud that exists in small cap Chinese stocks that were brought to market via reverse merger. Read more